SAN DIEGO & LONG ISLAND CITY, NY--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that purchasers of Altice USA, Inc. (NYSE: ATUS) have filed a class action complaint against the company's officers and directors for alleged violations of the Securities Act of 1933 pursuant to the registration statement and prospectus issued in connection with the company’s June 2017 initial public offering ("IPO"). Altice USA, together with its subsidiaries, provides broadband communications and video services in the United States.
View this information on the law firm's Shareholder Rights Blog: www.robbinsarroyo.com/altice-usa-inc-june-2018
Altice USA Accused of Failing to Admit Risk Factors in Offering Documents
According to the complaint, in June 2017, Altice USA held its IPO, issuing over 71 million shares of Altice USA common stock and raising over $2.15 billion in gross proceeds. Altice USA, which was the U.S. subsidiary of Altice N.V., a Netherlands-based multinational telecommunications company, repeatedly referred to its relationship to Altice N.V. as one of its "competitive strengths." However, Altice N.V. was far from a competitive advantage because it was suffering severe customer attrition in its key markets due to mismanaged price increases and shoddy network and customer support. On November 2, 2017, Altice USA and Altice N.V. both announced financial results, with Altice N.V. announcing severely disappointing revenue, margin, and earnings declines in its two most important markets, France and Portugal. Altice N.V. and Altice USA then announced a management and governance reorganization, including the resignation of Altice USA's Chief Executive Officer, while investors and market analysts expressed concern and the price for Altice USA shares continued to decline. Now, Altice USA shares trade below $18 per share—an approximate 40% decline from the $30 offering price.
Altice USA Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leonid Kandinov at (800) 350-6003, LKandinov@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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